4G Capital has partnered with the insurtech firm Turaco to provide a micro health insurance package to its clients across Kenya via WhatsApp or telephone and mobile money wallets in just 72 hours.
4G Capital says the claim will be offered to clients either hospitalised for 3 consecutive nights or more, or in the unfortunate event that they pass away. The cost of a 12-month policy starts at Ksh. 1,000/year. The product is underwritten by Prudential Life Assurance Kenya Ltd., and distributed by Ellard Insurance Agency Ltd. DBA Turaco.
“We are delighted to partner with Turaco to bring this most urgent health insurance to our clients in their hour of greatest need. Informal market traders are the spark needed for national economic recovery,” said CEO and Founder Wayne Hennessy-Barrett.
4G Capital, founded in 2013, provides working capital credit for East Africa’s micro and small businesses, micro health insurance will help the firm protect it’s 104,000 Kenyan clients from devastating financial consequences as a result of sickness or injury or COVID-19.
The majority of 4G Capital’s clients are traders operating within the informal sector, where one unexpected financial burden could put them out of business. 42% of low-income households in Kenya experience a catastrophic financial event caused by hospitalisation every five years.
According to Kenya’s Ministry of Health, almost 13% of Kenyans are unable to seek help for health care services due to lack of funds, and over 6% of households are at risk of impoverishment as a consequence of unexpected health care expenditure.
Kenyan Government’s most recent UHC Social Assessment Report show that 62% of Kenyan’s do not have health insurance, the National Hospital Insurance Fund (NHIF) covers 35% of all Kenyans, and approximately 1.5 million (c.3%) Kenyans have private healthcare insurance.
During these extraordinary times brought about by COVID-19, the survival of small businesses is critical to the welfare of communities across Kenya as they provide affordable food and vital daily provisions. Turaco’s insurance policies cover COVID-19, giving additional peace of mind to 4G Capital’s clients.
“Our mission is to free people from the fear of financial shocks, which is all the more relevant during this COVID-19 pandemic,” Ted Pantone, CEO and Co-Founder of Turaco. “Working with 4G Capital presents a great opportunity to get more people insured with a partner that is aligned with our vision. Although many things in life are uncertain, the ability to access and afford healthcare should not be one of them. We’re glad to be working towards making this a reality for 4G Capital’s clients.”
Early this year, Turaco raised $1.2 million in seed funding to further scale its operations across Africa. The $1.2 million round followed a $40,000 received in grant funding late last year from Villgro Kenya and between $50,000 to $60,000 venture building support facilitated by inclusive fintech accelerator, Catalyst Fund.
Pantone said the firm is still looking for additional value-aligned investors who have the capacity to support the firm’s vision to insure a billion people who include 4G Capital’s clients from over 90 local branches across Kenya and Uganda.
